Critical Minerals Group Limited (ASX:CMG), a leader in mineral exploration and development, is excited to announce that its wholly-owned subsidiary, CMG 1 Pty Ltd (CMG1), has executed a non-binding term sheet with True North Copper Limited (ASX: TNC), an esteemed ASX-listed resources company. This term sheet marks a significant step forward in a farm-in agreement pertaining to two of CMG1’s exploration permits in Queensland.
Under the terms of this agreement, True North Copper Limited may acquire a 75% interest in two key exploration permits held by CMG1. These permits include EPM 27998, forming the Figtree Creek Project, and EPM 27999, forming the Lorena Surrounds Project, both strategically located in Mount Isa, Queensland.
The agreement outlines that to earn the option to acquire this 75% interest, TNC is required to incur a minimum expenditure of $750,000 in various farm-in activities over a three-year period. The specific activities to be undertaken will be finalized in the near future.
Upon meeting the expenditure requirement and electing to exercise its option, TNC and CMG1 intend to establish an unincorporated joint venture for the Tenements and associated assets. TNC will manage this joint venture. Additionally, CMG1 will benefit from a 3% net smelter royalty on production from these Tenements.
It is also stipulated that if TNC fails to meet the minimum expenditure condition or chooses to withdraw from the arrangement at any point, the farm-in arrangement will be terminated.
This collaboration between Critical Minerals Group and True North Copper Limited represents a significant opportunity for both companies to leverage their respective strengths and expertise in the exploration and development of these promising Queensland sites.
Commenting on the Term Sheet, CMG, CEO, Scott Winter said,
“We are pleased to announce our plans to work with True North Copper, a strategic partner wellequipped to maximize the value of our non-core assets. As previously communicated, our primary focus at CMG is the Lindfield Vanadium Project in Queensland. Recent Scoping Studies have substantiated its strong financial viability, positioning it as a compelling mining project. We encourage investors to review our latest ASX announcements for an insightful overview of the progress made at Lindfield.”
About us:
Critical Minerals Group Limited (ASX:CMG, “CMG” or the “Company”) is an exploration company with the principle focus of developing critical minerals projects. CMG was formed to identify, secure, acquire and develop critical mineral resource tenements in proven regions in Australia.
Contact details:
Jane Morgan